Acquisition accelerates PTC’s ability to support companies seeking
product and service advantage in a smart, connected world

NEEDHAM, Mass. — (BUSINESS WIRE) — December 30, 2013 —
PTC(Nasdaq:
PTC) today announced it has acquired
ThingWorx,
creators of an award-winning platform for building and running
applications for the Internet of Things (IoT), for approximately $112
million, plus a possible earn-out of up to $18 million. The acquisition
of ThingWorx positions PTC as a major player in the emerging Internet of
Things era.

The ThingWorx acquisition extends PTC’s strategy by accelerating its
ability to support manufacturers seeking competitive advantage as they
create and service smart, connected products. As part of PTC, ThingWorx
will continue to help customers in a wide range of industries seeking to
leverage the IoT, including telecommunications, utilities, medical
devices, agriculture, and transportation, as well as an emerging partner
network of IoT-enabled service providers.

According to a recent research report
Disruptive
technologies: Advances that will transform life, business, and the
global economy (May, 2013) from the McKinsey Global
Institute, the Internet of Things has the potential to create
economic impact of $2.7 trillion to $6.2 trillion annually by 2025. The
firm believes perhaps 80 to 100 percent of all manufacturing could be
using Internet of Things applications by then, leading to potential
economic impact of $900 billion to $2.3 trillion, largely from
productivity gains. For example, with increasingly sophisticated
Internet of Things technologies becoming available, companies can not
only track the flow of products or keep track of physical assets, but
they can also manage the performance of individual machines and systems.

In the IoT era, PTC’s customers are bringing to market increasingly
smart and connected products which can generate value in new ways as
streams of real-time operational data are captured, analyzed, and shared
to deepen a company’s understanding of its products’ performance, use,
and reliability. PTC will use the ThingWorx platform to speed the
creation of high value IoT applications that support manufacturers’
service strategies, such as predictive maintenance and system
monitoring, in complement to PTC’s existing
service
lifecycle management (SLM) and extended
product
lifecycle management (PLM) solution portfolio. With ThingWorx, PTC
will also now offer its customers a means to establish a secure,
reliable connection to their products as well as a platform to rapidly
develop applications for maintaining and operating them - and ultimately
for finding ways to create new value from them.

"All aspects of our strategy to date have centered on helping
manufacturing companies transform how they create and service smart,
connected products," said PTC president and CEO Jim Heppelmann. “For
manufacturers today, it is clear to us that improved service strategies
and service delivery is the near-term ‘killer app’ for the Internet of
Things and this opportunity has guided our strategy for some time. With
this acquisition, PTC now possesses an innovation platform that will
allow us to accelerate how we help our customers capitalize on the
market opportunity that the IoT presents.”

The opportunity, however, goes well beyond this immediate pragmatic
application. Industries of all types are poised to see disruption from
the Internet of Things and the expanding networks of connected sensors
and devices, and a growing ecosystem of ThingWorx partners is forming to
capitalize on this growth. As part of PTC, ThingWorx intends to continue
serving this diverse market with senior management continuing to focus
on its current path.

"At ThingWorx, we share PTC's vision for helping organizations
fundamentally leverage the connected world," said Russell Fadel, CEO and
co-founder, ThingWorx. "We believe all industries, but especially
manufacturing, will be transformed in the Internet of Things era. We are
excited to pursue this broad set of opportunities with the resources and
proven solution portfolio that PTC provides.”

The acquisition is expected to add more than $10 million of revenue over
the next 12 months, with $5 million to $7 million of revenue in FY’14.
As a result of cost synergies and investment plans for ThingWorx, PTC
still expects FY’14 non-GAAP EPS of $2.00 to $2.10. PTC drew $110
million from its credit facility to finance the transaction.

PTC to Conduct Investor Conference Call

PTC management will host a conference call to discuss this acquisition.

The audio replay of this event will be archived for public replay
until 4:00 p.m. (CT) on January 10, 2014 at 1-800-308-7859
Passcode: 7289. To access the replay via webcast, please visit
www.ptc.com/for/investors.htm .